By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Nintendo - Ubisoft: Our Wii and DS Profits Are Used to Finance Big 360 and PS3 Games

That's how it's always been, but now they label by platform. Too bad for them that those 360/PS3 games are going to be up against a bunch of other high budget games with only a 20-22 million user base ('08)when you add them up, still less profit than making a good Wii game.

Do these execs go to college, I mean they seem to forget or are ignorant of basic business principals. No wonder why inspite of the videogame industry growing so much hardly any of the big players are making any money.



I would cite regulation, but I know you will simply ignore it.

Around the Network

I don't get it. Why not use the profits from profitable games to finance... even more profitable games? Loss leaders are ok for first parties, but make no sense for third parties...



Help! I'm stuck in a forum signature!

I just wanted to back up my last statement about losses and or under performance in the game industry.

You would think the largest publishers would be making a lot of money right?

Earnings/to share ratio.

EA - Q1 fiscal '08 (Q2 real): 750.7x (bad)

Activision, now the largest publisher : projected 46.7x not as bad.

Ubi's annual is 1.15 (don't know where to find quarterlies or ratios for euro traded stocks. Probably works out around the same ratio as Activision)

 

To put that in retrospect

Disney Q projected... 15.5x

Kraft 19.1x

Microsoft 20.3x

 



I would cite regulation, but I know you will simply ignore it.

One, the fact that they say casual games cost "1 million euros to 4 million, depending on how many platforms they're being created for" should indicate that casual != (or =/=) Wii game.  In fact, it says just the opposite because it indicates that those games are often being ported to other systems as per the bolded part.

Two, no where in there does it ever state that the expensive games are losing money.  It only says they are funded by cheaper games.  As has been said, this merely sounds like goo dbusiness sense.

Three, and this is important as many people don't nerstand big business, even if the PS3 and 360 games were losing money on the whole there is a very good reason why the company still supports them.  At the worst, these potential loss-leaders put their name out their and give them brand power that will essentially act like advertising.  If someone enjoys an Ubisoft game on the PS3 that fails to make a profit they are still more likely to buy an Ubisoft product than before.  Maybe it will be one of the profitable casual games, maybe it will be one more sale towards making the big budget PS3/360 games profitable. 

Either way, as a business they wouldn't make these decisions if they weren't at least potentially profit-making endeavors.  That is simply not how corporations opperate.  Some way, some how, they mean to gain money through every action they take (even if they aren't successful at it).  And their shareholders wouldn't have it any other way.



You do not have the right to never be offended.

This is similar to how home video increased film profits, so budgets could increase with less risk (aside from adjusting older film budgets for inflation).



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

Around the Network

This was already discussed to death when it was posted a few days ago.



omgwtfbbq said:
I don't get it. Why not use the profits from profitable games to finance... even more profitable games? Loss leaders are ok for first parties, but make no sense for third parties...

My thoughts exactly...

However, they really are not saying that they only make casual games for the Wii/DS. Just that they make money from them.



I don't have too much of a problem with this stratagy, as long as they use a good portion of the Wii game profits to develope high quality Wii games.



ChichiriMuyo said:

One, the fact that they say casual games cost "1 million euros to 4 million, depending on how many platforms they're being created for" should indicate that casual != (or =/=) Wii game.  In fact, it says just the opposite because it indicates that those games are often being ported to other systems as per the bolded part.

Two, no where in there does it ever state that the expensive games are losing money.  It only says they are funded by cheaper games.  As has been said, this merely sounds like goo dbusiness sense.

Three, and this is important as many people don't nerstand big business, even if the PS3 and 360 games were losing money on the whole there is a very good reason why the company still supports them.  At the worst, these potential loss-leaders put their name out their and give them brand power that will essentially act like advertising.  If someone enjoys an Ubisoft game on the PS3 that fails to make a profit they are still more likely to buy an Ubisoft product than before.  Maybe it will be one of the profitable casual games, maybe it will be one more sale towards making the big budget PS3/360 games profitable. 

Either way, as a business they wouldn't make these decisions if they weren't at least potentially profit-making endeavors.  That is simply not how corporations opperate.  Some way, some how, they mean to gain money through every action they take (even if they aren't successful at it).  And their shareholders wouldn't have it any other way.

Yep.

 



The actual meaning of what he meant might have been lost in translation.....he could have said something like"we're using the profits from previous games to make 360/PS3 games for the moment, until we get more wii projects"

or, that they are probably going to support the PS3/360 more in the future